Tech Giant Samsung announces $17bn Chip Plant for Texas

South Korean Tech Giant Samsung announces a 17 billion US dollars chip plant for Texas. Plant announcement amid to build advanced chips which will be used in phones, laptops, cars, and other electronic devices. The tech giant said it would build the plant outside Austin, in Texas. Tech Giant Samsung chose Texas due to its better infrastructure and Government support. Samsung already has the plant in Texas.

Analysts said Samsung is likely to make an advanced chip of 5 nanometers or less by using the Netherland’s ASML machines. Qualcomm is already using these machines to produce the chips at large scales.

Purpose To Build the Chip Plant

Earlier this year, the world face the biggest semi-conductor (chip) shortage crisis due to Covid-19. Chip shortage happen because the demand for mobiles, laptops, and electronic devices surged during an epidemic. Production of chips also halt during the pandemic is also the great reason for the shortage of chips. Due to the shortage of chips, tech giants like Apple closed their production for some days. Tech Giant Samsung stated that they have slowed down the production of their products and are expecting a decline in profit. Automakers giant like Honda, Ford, and BMW also halt their productions several days earlier this year due to chip shortages.

Security is also the main reason to increase the production capacity of chips in America. Because the US is heavily dependent on chips that are produced overseas, especially in Taiwan. And China has claimed Taiwan as its own territory for so long. And the present situation is not good in the South China Sea. China is preparing to invade Taiwan, according to US officials. So, security is one of the main reasons to increase the production capacity of chips in America.

US Government Initiatives To Increase Chip Production

US Government under Joe Biden’s administration has announced to put billions of US dollars from federal funds to increase the capacity of manufacturing and in research to compete with China in advanced technologies.

Tech Giant Samsung thanks President Joe Biden’s administration for creating an environment that supports companies like Samsung to manufacture the advanced chip in the US, in a statement. They also mentioned is statement that we also thanks to administration and Congress for incentives for domestic chip production and research.

Senator Cornyn demanded on Tuesday from President Joe Biden’s administration to invest more money to increase the chip production capacity in the US because it is more important for national security. US is already worried about China’s advancement in military equipment, hypersonic missiles, and AI expertise.

Job Opportunities For Americans

Tech Giant Samsung said construction of the plant will kick off in the first half of 2022. Completion of a plant is expected in the second half of 2024. That’s why chip production will start at the end of 2024. The plant would create about 2000 high-tech jobs for the American people. The plant would also create about 6500 construction jobs or more with the construction begins.

Tech Giant Samsung is likely to receive a 27 million US dollars grant by the Texas Enterprise Fund (TEF) for job creations Texas Government officials said on Tuesday.